A social media giant Facebook is planning to bring new cryptocurrency called Libra. However, the launch doesn’t seem to be free flow for Facebook. This is due to the new hurdle from group nations known as G7 nations.
The G7 nations came in as oppose to Libra and said that cryptocurrency may bring international risks. It should not allow until they address the issue.
A report of the G7 working group stated that this could make bad impact on the traditional monetary. It also added that this may damage cross border actions to fight against terror financing and money laundering. This could lead to serious issues for cybersecurity and privacy.
The member of the Europeans Central Bank, Benoit Coeure said that G7 nations believe that there should not be any launch of the stable coin until oversight challenges and associated risks are completely addressed.
In response to all this, the Libra Association said that the cryptocurrency is ready to meet the regulations. They further added that Libra was planned to maintain national sovereignty and completely stand against any efforts made to stop illicit finances.
“Libra is born out of the thought to complement prevailing regulatory institutions and respecting the protections imposed on the digital world”, they added.
As per creators, stablecoins at designed to overcome the volatility that seems to be impractical for commerce.
However, Libra got varied criticism from different sections of society. Policymakers look it as a tool that may destabilize the world’s financial system. Few said that it could impose a risk on the user’s privacy.
The report prepared by G7 stated that there is a need for formalizing a new set of rules to effectively deal with the newer technological advancements.
Facebook has cleared its stand that Libra is truly made to overcome the inefficiencies prevailing in the payment system.